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Education loan for master’s in the U.S.

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Thinking about getting your master’s degree in the U.S.? As an international student, you might be wondering how to cover the costs. Education loans can be a great way to finance your studies. They can help you pay for tuition, living expenses and more.

Let’s walk through loan options designed for international graduate students like you. We’ll explore eligibility requirements, how to apply and what to expect when it’s time to repay. We’ll also give you tips on choosing the right loan for your U.S. master’s program.

How to apply for an international education loan for a master's in the U.S.

The process for applying for postgraduate education loans varies depending on the lender and loan type. However, the steps below outline the general process for securing funding.

1. Research and compare lenders

The first step in applying for a postgraduate education loan is researching and comparing different lenders. Look for loans that cater to international students and consider factors such as interest rates, repayment terms, cosigner requirements and loan amounts. Use comparison tools or consult with financial aid offices to identify the best options.

2. Gather required documents

Most lenders will require a set of documents to process your loan application. Commonly requested documents include:

  • Proof of acceptance to a university (offer letter or enrollment confirmation)
  • Financial statements or proof of income (yours or your cosigner’s)
  • Credit history (if applicable)
  • Valid identification (passport, visa or other identification documents)
  • Personal statement or academic background information (optional for some lenders)

3. Submit your application

Once you’ve gathered the required documents, submit your loan application online through the lender’s website. Ensure all information is accurate, as mistakes or missing documents could delay the approval process.

4. Loan approval and disbursement

After submitting your application, the education loan provider will review your documents and either approve or reject your loan. If approved, the loan amount will be disbursed directly to your university or to you, depending on the lender’s terms. Be sure to review the disbursement process with your lender to avoid any delays in receiving your funds.

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Types of education loans for master's students in the U.S.

Private education loans

Private loans are the primary option for international students ineligible for U.S. federal loans. They’re offered by banks and financial institutions, with two common types:

  • Cosigner loans: Require a U.S. cosigner to secure better loan terms
  • No-cosigner loans: Focus on your future earning potential, eliminating the need for a cosigner

Loans from your home country

Securing a loan from your home country can sometimes provide better rates, but exchange rate fluctuations may impact repayment costs.

University-sponsored loans

Some U.S. universities offer loans directly to international students, often with favorable terms. However, availability is limited and may not cover all expenses.

Common mistakes when looking for an education loan for master's (and how to avoid them)

Here are some of the most common mistakes international master’s students make when looking for education loans and strategies to avoid them:

1. Overlooking no-cosigner loan options

Many international students assume they need a U.S. or Canadian cosigner to secure a loan, leading them to limit their options or rely on family connections. While cosigner loans can offer better interest rates, no-cosigner loan options are becoming increasingly available from lenders that cater to international students.

How to avoid it: Research specialized lenders that offer no-cosigner loans. These postgraduate international student loans often evaluate your future earning potential and academic achievements rather than your current financial standing, making them accessible to students without local cosigner support.

2. Not considering the total cost of the loan

A common mistake is focusing only on the loan’s interest rate without fully understanding the total cost of the loan, including fees, repayment terms and the duration of the loan. This can lead to unexpected expenses and a longer repayment period than originally anticipated.

How to avoid it: When comparing loans, take into account not just the interest rate, but also the total cost of the loan, including origination fees, penalties for early repayment, and the total amount you’ll need to repay over time. Always refer to the annual percentage rate or “APR.” It represents the yearly cost based on the loan’s interest rate and fees, expressed as a percentage. An APR provides an “apples-to-apples” comparison across available loan products and providers.

3. Ignoring currency exchange risks with home country loans

Some international students take out loans in their home countries, unaware of the risks associated with fluctuating exchange rates. If the local currency weakens against the U.S. dollar, the cost of repaying the loan can increase significantly, putting additional financial pressure on the borrower.

How to avoid it: Carefully consider the currency exchange risk when opting for a home country loan. If possible, look for loans in U.S. dollars or other stable currencies to avoid potential losses due to exchange rate fluctuations. Alternatively, set aside extra savings to hedge against any currency volatility.

4. Over-borrowing

Many students borrow more than they need, assuming that it will be easier to repay the loan after graduation. However, over-borrowing can lead to excessive debt, higher interest payments, and financial strain after completing the program.

How to avoid it: Only borrow what’s necessary to cover tuition, living expenses and essential costs. Create a detailed budget outlining all your expected expenses and stick to it. Avoid the temptation to borrow extra for discretionary spending.

5. Not reviewing repayment terms thoroughly

Some students don’t take the time to fully understand the repayment terms of their postgraduate student loans, including the repayment period, the grace period after graduation, and whether deferment or forbearance options are available. This can result in missed payments, penalties or an inability to repay the loan on time.

How to avoid it: Before signing any loan agreement, thoroughly review the repayment terms. Understand when repayment starts, the monthly payment amounts and what happens if you’re unable to pay. Consider loans with flexible repayment options, such as deferred payments until after graduation or income-based repayment plans.

6. Failing to explore alternative funding options

Some students rely entirely on loans without considering alternative funding sources such as scholarships, fellowships or assistantships. This can lead to higher loan amounts and more debt than necessary.

How to avoid it: Make scholarships and assistantships a part of your funding strategy. Research and apply for as many postgraduate scholarships as possible, especially those that cater to international graduate students. Assistantships or part-time campus jobs can also help offset your living expenses and reduce the need for loans.

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About MPOWER Financing

MPOWER Financing is dedicated to supporting international students pursuing their master’s degrees in the U.S. and providing tailored financial solutions to ease the cost of higher education.

  • Diverse loan options for master’s programs: MPOWER offers fixed rate student loans ranging from US$2,001 to US$100,000 total, specifically designed to meet the financial needs of master’s students. With competitive interest rates and a 0.25% discount for auto pay, these loans help students manage their finances while focusing on their education.
  • No cosigner or collateral required: MPOWER’s student loans for international master’s students don’t require a cosigner or collateral, simplifying the borrowing process. Students can access loans regardless of other existing financial obligations, with no prepayment penalties, making it a flexible option for those studying in the U.S.
  • Seamless online application: The fully digital loan process allows master’s students to quickly and easily apply for funding. With a 30-second eligibility check, fast approvals, and efficient disbursement, students can secure financing without delays, ensuring they can focus on their studies.
  • Comprehensive student support: MPOWER goes beyond just financing, offering visa support letters, a visa preparation course, and career advice through its Path2Success program. These resources are designed to ensure international master’s students are equipped for academic and professional success while studying in the U.S.

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FAQs

What types of loans are available to international students pursuing a master’s in the U.S.?

International students can access private loans, home country loans and some university-sponsored loans. Private loans typically require a cosigner, but no-cosigner loans are becoming more available.

How do I apply for a no-cosigner loan?

To apply for a no-cosigner loan, research lenders that cater to international students. You’ll need to provide documentation such as proof of admission to a U.S. university, financial information, and identification. These loans are often based on your future earning potential.

Can education loans cover living expenses in addition to tuition?

Yes, most education loans for international students are designed to cover tuition and fees and living expenses such as housing, food, transportation, and health insurance.

Do I need to start repaying my loan while still studying?

Repayment terms vary depending on the lender. Some loans require you to make interest-only payments during your studies, while others allow you to defer interest and principal payments until graduation. Make sure you understand your lender’s repayment terms so you can plan accordingly.

*Rates as low as 9.99% (10.89% APR) available only for the fall 2025 semester, and you must submit your application by January 31, 2025. This interest rate and APR includes a 0.25% discount for automatic recurring payments and a 0.75% discount from our limited-time early planner promotion.

DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.

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